A scandal-hit payments firm called Wirecard has reportedly said that €1.9 billion missing from its accounts, as pointed out by auditors, may simply not exist.
As a result, the Germany-based company’s CEO quit on Friday while the hunt for the missing cash hit a dead end in the Philippines.
According to the BBC, the Central Bank of Philippines said none of the money appears to have entered the country’s financial system.
Wirecard is now withdrawing its financial results for 2019 and the first quarter of 2020. In a statement issued earlier today, the company said:
"The Management Board of Wirecard assesses on the basis of further examination that there is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion EUR do not exist."
The BBC further reported that the missing money accounts for around a quarter of the company’s total balance sheet.
Wirecard has said it is engaging in ongoing discussions for a financial lifeline with banks, including a current arrangement that is due to expire at the end of this month.
The scandal emerged after several articles published by the Financial Times in 2019, focusing on alleged accounting irregularities in Wirecard’s Asian operations.